The refinancing package will see Stonegate’s balance sheet structure “significantly simplified and strengthened”, the pubco explained.
As part of the deal, funds managed by TDR Capital will make a c.£250m shareholder contribution.
The completion of the debt refinancing requirements was said to provide “certainty” for Stonegate and was described by the group as a “testament to the strong performance of the business” and the “continued support” of its bondholders and owner.
Moving forward
Stonegate CEO David McDowall commented: “We have always said we would achieve the right outcome on our refinancing requirements, and I am delighted we can now move forward with confidence and certainty, having achieved our balance sheet goals.
“The new agreement enables us to really focus on driving performance across all our divisions, and delivering on our strategy which is now having a material impact on our overall profitability.
“I am pleased we now have certainty to truly focus on what we do best, which is bringing people together through our passion for great pubs, bars and venues.”
Stonegate added it has a “clear strategy” in place to drive financial improvement focussed on its commitment to position every site for success by putting the right pub in the right place, with the right investment, as well as investment in innovation, efficiency and technology.
It comes after Stonegate, the UK’s biggest pubco, announced the financing of a portfolio of 1,034 pubs in December last year.
Continued dedication
During the 28 weeks ending 7 April 2024, Stonegate reported an 8% rise in adjusted EBITDA to £196m with a particularly strong performance from leased and tenanted and operator-led businesses.
McDowall added: “I would like to thank our lenders for the positive way we have reached these agreements and TDR for their continued support.
“Most importantly, I would like to thank Stonegate colleagues for their continued dedication, commitment and passion which has seen us navigate a difficult few years. We are now in a really strong position to deliver on our longer-term objectives.”
